>> mark carney hits the big apple. the bank of england governor talks up the recovery in an exclusive charlie rose interview. >> well, i think it is really just beginning. the true recovery is beginning. the core of the systems are repaired. >> europe's biggest tour operator gets boost from the british going abroad. the ceo plans to drive earnings even higher. >> and world leaders stand shoulder to shoulder to remember mandela. a memorial to honor south africa's first black president is just beginning.

good morning, everybody. you are watching "the pulse." we are live from bloomberg's european headquarters in london. >> this is what is coming up. a celebrity chef joins "the pulse." he will give us his take on restaurant trends and a sneak preview of his new tv series. that is 30 minutes from now. >> another interview you will not want to miss is with microsoft exec satya nadella. he has been shortlisted as a possible successor to steve ballmer. he speaks with us exclusively at the top of the next hour. >> we begin with an exclusive conversation with mark carney. he spoke with charlie rose about the state of the u.k. mortgage market, calling it rocksolid. >> what do we need to know? what did he say? >> we are looking at a recovery

in the wider economy in the u.k. and you have got to think about what is important. what is the risk of the low rate policy? the big issue at the moment is the u.k. housing market. it is a big issue. this is what mark carney had to say to charlie rose. >> if you look at that mortgage market today versus where it was in 2007, it is rocksolid. 2007-2008, 60% of the mortgages put less than 10% down on a house. now 85% of mortgages put a lot more down on houses. but this is a housing market that is still relatively firmly valued, let's put it that way. , more broadlyndon around the country relative to incomes.

and within the context of households that have paid down about 30% of debt relative to their income over the last five years, that is good. they still have a fair amount of oft related to income american households. you look at that situation and say, ok, there is some welcome to cover he in the u.k. housing market. let's be prudent. let's act early. a rocksolid mortgage market compared to precrisis. probably not a difficult thing to say, because it was pretty bad in 2007. nonetheless, a lot of people saying that this still smells a little bit like 2007. >> interest rates will probably have to go up a little bit sooner than he wants them to. >> i think it is more about the housing market. the risk is, if the housing market goes on a tear and he is going to raise rates, is the rest of the economy ready for that?

seems to be very concerned about the housing market. i think the message is not that. the message here, the concerned about the housing market, but more concerned about the risk to the low rate policy. you see him losing -- you see him using these tools. doesig question now, what this mean over the next 6-12 months? does this set up a clash between mr. carney and mr. osborne? apparently people do not need to know about it to understand it. >> i think it will do not understand the implications yet. perhaps that is what jon was talking about. >> the latest on what governor carney said. you can watch his full interview tonight on bloomberg. >> make sure you tune into that. it is interesting, to say the least. let's turn our attention to the other good news for the u.k. general public. tui travel announced record

profits today. manus cranny is here to write down the numbers. -- to break down the numbers. >> a three-year recession. get me out of here. think about the brands. thompson, first choice. the point about to eat travel -- sent in -- they are they are selling more holidays online at better prices. the stock is giving up initial gains. he is speaking to journalists right now and saying they are going to take a page out of the german system. that is their biggest market, where numbers declined. the u.k. and nordic's, the number of people being carried by qe are up. they are doing more specialized and tailor-made holidays. they interact with you all the way through the process. margins are also improving in the u.k. and in the nordics relative to thomas cook.

>> france has been a problem for companies in recent reports. what is the latest on that country? it is still tough. a lot of the french want to go to north africa and tunisia. egypt is open for business again and we are seeing a rebuilding. it is coming from a low base. the overall numbers of passengers that they carried in france dropped by some 17%. some breaking headlines now from the conference call where peter long is making his statement at the google hq, trying to interact with technology as a key issue. it isrance, he said that a perfect storm. a lot of french people like to go to egypt and tunisia and there are problem issues for the company. he said the french unit will write even by 2015. this is the part of the business which lost 48 million pounds in 2012 and 60 million pounds in

2013. technology is key. it will be interesting to see what he thinks over at google hq. >> thank you very much, talking about the french problem at tui travel. we saw production data out of the french economy this morning. that might be impacted by our next story. cut almost 6000 jobs from its defense and space unit. let's get more details on what happens next from david tweed. he joins us from berlin. the origins of this restructure must lie with the failed merger with bae systems. since then, management looking very carefully at this unit. >> not that long ago, management wanted to see half of the business coming from the airbus civil aircraft business and half of the business coming from defense and space. since the merger was dropped by the germans, they have stepped

right away from this. it is also a reflection of the drop in spending that we are seeing in europe. that is something that tom eggers was talking about. markets in europe are particularly down. one example is that, think about it. france put in orders for 50 a- 400 military aircraft transport planes. in the budget, only 15 were actually budgeted. they are not getting the support that they were looking for from european governments who are big shareholders. why keep up the unwieldy infrastructure of defense companies? seeing why we are closures going on in four countries as well as 6000 jobs, which represents about four percent of their workforce. >> are investors concerned that there is too much focus on the aviation business? >> you might think, if they do

focus on the business, it could help the share size. 71% so far this year because there is still more road to come, according to analysts we have been speaking to. with oil prices above $100 per barrel, there is a lot of continued incentive for the aircraft industry to jettison those older aircraft and get more efficient fleets. we are seeing that happening in the united states, china, indonesia. >> thank you so much. david tweed. >> let's talk tech now. in the decade since the web conference was launched in paris , there have been a lot of achievements in technology that affect many aspects of our lives. let's talk about what we are learning from this year's event. caroline hyde is at the event. the tech world is a very different ways compared with 2003.

>> you are right. just coming from the wreckage of the.com bubble and now we are talking about another bubble forming in the technology industry. think about the landscape back in 2003. launched, 200,000 songs. now 2.6 million songs. you also have ipads and iphones. the developments have been astonishing. you also have pandora and spotify adding to the music scene. think about how much camera phones have changed. you are so addicted to our cameras in our smartphones that in the oxford dictionary. cutting-edge cameras within your telephone. you have moved on leaps and bounds in terms of technology. we are also seeing a change in terms of where you go for your

funding. the united kingdom, london has become a hotbed of talent in terms of start ups. desperately trying to foster some of that growth. they have had some notable success, of course. recently, they have had a start that sold shares on the nasdaq earlier this year. it is now worth some $2 billion. the french successes have been few and far between. france is the company that first develop the consumer computer. it first came up with the precursor to the internet. why were those developments not fostered in france? why entrepreneurs went abroad to berlin, tel aviv? we will be asking those questions of our next guest, coming from weddington partners. he will be joining us to talk about how to interest -- how to invest in france and start ups in general. >> thank you. we have a great interview coming

up with one of the guys at microsoft they could be an internal candidate to replace steve ballmer. >> he is currently head of the cloud operations and he is on the short list as an internal candidate. an advantage or disadvantage? we will talk about that later. >> in the meantime, europe could be on the brink of a deal for a banking union. that is according to the german finance minister. he has opened the door to an agreement. that is something germany has seriously rejected. they will make the bank failure bill a top priority for next week's summit. snow showers and freezing temperatures. they were demanding the president's ouster. our chief correspondent is in ukraine today.

>> and a landmark step in a five-year effort to rein in wall street. they have decided to curb some kind of trading in the final version of the volcker rule. five agencies are said to sign off today. the ban has been contested by wall street banks for more than three years, including j.p. morgan and goldman sachs. >> coming up, we speed to a venture capitalist about this year's most exciting startups and the investment climate for new businesses in france. >> and he is one of the most celebrated chefs in the world. heston blumenthal shares his recipe for building a brand this hour on "the pulse." ♪

>> you are looking at live pictures coming from south africa, a memorial to honor nelson mandela beginning. these are live pictures coming from the event at the football stadium. tens of thousands of south africans are there to pay tribute to the first black president of the country. obama and -- barack many other world leaders are in attendance. let's talk about what we are seeing as the event is unfolding. lenny joins us with more. stunning pictures coming.

clearly, a huge amount focus on this event. what is the story that is going to be told? >> people are still arriving. hundreds of thousands, millions will be watching what goes on today. these are live pictures from the stadium. it is raining, but south africans are singing. they are so part of this moment, knowing they will reflect back on a leader that change this country's face. be addressingill the crowd. other people will also be addressing. we also have the president of was notd xi jinpeng able to attend, which was interesting. of state will be addressing the crowd from that country. india and cuba as well. president, the man who succeeded nelson mandela, a

man that also did not finish his second term in office as well. a lot of controversy surrounding him. this is the part where we see south africans coming together, all editions showing that they are united. mandela wason disappointed, but at the end of the day, south africans are good at one thing, coming together when they need to. you see people from various parts of the country, even people from botswana and libya driving through, camping overnight to join in this memorial service. >> and they get rugby as well, to be honest. ferris, -- ton to paris. caroline hyde is standing by with a check on the french startup environment. >> thank you. i am now joined by eric.

he is investing in some of these startups. how important is france at the moment in terms of the startup scene? where in europe is best to invest and how is france competing? >> it is a very interesting question. i do not think there is a better country. what has happened in the past couple of years is that the platforms have been developed, like facebook and google any iphone. to break down the walls. it used to be the war, if you , -- he usedhe war to be the world, if you are not one place in the world, you could not be successful. today, you can be anywhere in the world and be successful. >> what is trending? is it mobile payments or individual hotspots?

>> it is everything you have talked about. lifestyle, health, food. all of these things that were not touched by technology before are being submerged by new ideas . a big technologic shift out there. >> give us an idea of food. we have heston blumenthal coming on a little bit later. how is food becoming oriented? a menu to be delivered around you and you get all of the ingredients? and then you can cook the meal? what are the new ideas for food? >> that is an idea. ways to useny mobile and access different ideas. you can imagine people in the future are going to be able to follow a diet more strictly. to makel use devices

sure you do not have glutens if you do not want loons. -- want glutens. a lot of innovations coming up. >> a phone that is a snitch. be in five or 10 years from now, it will be able to check what is in your food. you will be able to follow your and keep track of calories and the things in it and -- in it. >> how competitive is it? you have money to give. are there lots more money -- more people trying to throw money at the tech world? >> there is crowd funding, as you know. it is changing the shape. the needl always be

for veteran investors that can provide guidance in addition to money. it is also a very interesting wall to look at. >> thank you very much. phones that will be able to assess even more of your calorie content, a terrifying idea. back to you. >> thank you so much. drive is generally not my thing. having a phone involved is the last thing i want. >> we are going to talk about food in a few minutes time. first of all, let me tell you about an interview that is coming up in little bit later. it is with satya nadella. this is one of the guys shortlisted as a possible successor to steve ballmer. he is currently in the cloud operation at microsoft. he could be one of the guys that takes over as ceo. we will talk to him in the second hour of "the pulse." >> still to come, picks from a celebrity chef and advice on how

to succeed in the kitchen, what it takes to run a restaurant empire. ♪

>> welcome back to "the pulse." time for a quick check on the equity markets. the china data is appointed. that has been a little bit of a wait on the european market. france, you saw the industrial production numbers disappoint. we wait for the u.k. numbers.

house prices are hitting a record in the u.k. mark carney saying, let's not be premature. taking you across ahead of those u.k. numbers, dollar-sterling. a little bit of a dip in the value as we wait for the u.k. numbers to come through. u.s. equity futures at the moment indicating a little bit higher. no real data on the slate. fed speakers yesterday, more or less saying it is time to taper. the market more shake that off. s&p futures flat. >> thank you. up next, dining disruptor heston blumenthal offended the eating experience with dishes like snail porridge and bacon ice cream. >> and it is today's pulse number. the price of the christmas menu

at his restaurant, the fat duck. surcharge not included. we will see you in a moment. ♪

>> welcome back to "the pulse." we're live from european headquarters here in london. i am francine lacqua. and -- >> and i am guy johnson. the data is not having an impact although the pound is pretty much unchanged. the u.k. economy is doing a little bit better. anwe have been bringing you interview with mark carney.

you said five simple words describe our approach. we are open for business. >> we are not open for the but the openness, for business point goes back to this issue of an open global economy. one of the fundamental lessons we have taken from the financial needs and where the world to get to to have a more resilient financial system is we need more resilient financial markets. we need to fix the banks. thated financial markets are more resilient. they are more like the equity market. we did not like the prices of equities in the fall of 2008, though we can always get a price. we can always transact. you cannot transact in the

global derivatives market. tens of trillions dollar markets that shut and brought the system down. beingmarkets are fundamentally reformed. that is where the central bank comes in. part of the reforms are the importance of collateral. people are taking naked exposure to each other. i will lend you money if you give me securities or something else as collateral. huge markets will develop in the use of collateral. the central bank is not a lender of last resort. it is the lender of last resort to those markets so that the collateral markets keep functioning, so the derivative market keeps functioning. we are open for business because we understand we have a continuing role to keep those

markets functioning so the system as a whole is more resilient. >> you can watch governor carney's full interview tonight on bloomberg tv at 10:00 p.m., u.k. time. >> our next guest is one of the most celebrated chefs in the world. he has a highly successful television and a show the kicks off tonight in a u.k.. , very nicelumenthal to see you. this is a business program. i am curious about heston the chef and heston the businessman. is this something you started out to be or -- >> i don't know how. my first full paid job as a chef

was opening the duck. and heer had a business ran it for several years. or seven years, i was the bookkeeper. i had done my basic accounting course. openedpointless, when i the restaurant, it was myself and the paul washer. no money whatsoever. hours a week 120 for the first eight or nine years. schoola modern business approach. if you need something, buy it, pay for it afterwards. money.ever driven by i just wanted to cut. , we had eight staff in the kitchen, 25 staff in total, and then --

it was so risky, that i am going to make sure that i built something to protect. you have to look into things, allowing your team to grow if you have good talent and the other thing is, the duck is my baby. >> now that you have a successful tv series, at the same time you have the range .ith -- they all of the money that comes in, we have the contract, the book is continual. the tv shows are in production.

we also have a deal with cole's. we have a restaurant and a whole new concept next year. there is vision express stuff. i am involved in signing everything. >> how much control do you actually have? about a michelin star chef in the u.k. but did not understand how his name or brand was being used. he was signing up to be this that and the other. i have never had an investor. i have never had anyone pay me. if the duck had been run by an accountant and it was run on paper, it would not have gotten to where it is.

i love learning. in terms of brand, it was very definite move a few years ago. i didn't have the time, the duck was where it wanted -- where i wanted it to be. it offers that came back as i wantetter, but would you to do? when i moved from bbc2 channel i made the decision, the fat duck, there will never be another fat duck. it might move, but there will never be another fat duck. heston has come out of the duck. you will never see fat duck cutlery. these techniques can be used across the board in lots of different styles of cooking. i wanted to become accessible.

, writing achef show book on family food, columns in , thispers, the eyewear was an important move for me because it was the ability -- because i love to design. i have control and everything that i put my name to. >> were you approach or is it something you want to do? own, but isigning my am working with tom davies. when they showed me the prototype, i said that is one mil sure that it should be. -- short then it should be. technology is going to play a huge part in the food industry.

he was talking about of phone that could sniff your food and tell you what is in it. >> that is scary. you're you look at what going to do next, do you look at technology and what is out there and what technology is doing? >> the biggest thing is a comes down to this -- we use wonderful ingredients, work with the best farmers and growers, but ultimately, you eat for two reasons, to stay alive and healthy and for pleasure. the only thing that gives you pleasure is the brain and the sent throughnal the pleasure receptors. ago, if you feel there -- guy

you play music, you can speed your eating up by 20% by playing loud rock music. the same recipe, you can give it to different people, if the font is different, the more flowery the font, the more complex the recipe was considered. this is where the merge with technology is going to be important. the great thing is, it is never going to take away from the fact that we want to get pleasure from food. stays withlumenthal us. we will have plenty to talk about his crave -- favorite christmas treats coming up. >> christie turlington is that in trust willing conference

london. she talked about what it is like starting up a nonprofit organization versus a business. is theting up a business same thing as starting a nonprofit. it was easier to raise money for -- for mys been up business than it was for my nonprofit. >> you will hear more for that -- from that interview later today. speaks to us in an exclusive interview about his company's rivalry with amazon and the cloud business. that interview is coming up up up up next hour. >> a memorial to honor nelson mandela started this hour. you are looking at live pictures. tens of thousands of south africans are there to patron viewed. barack obama and many other world leaders are in attendance. ♪

>> welcome back to "the pulse." we are live from bloomberg's london headquarters. heston blumenthal is the owner of the fat duck. thank you for sticking around.

let's talk about some of the sensory industries and how technology affects how we deal with food. you have become a scientist especially -- essentially. i went into some amazing restaurants in france and all of the things i remember, the sound of the crickets, the smell of the lavender. carving legs of lamb at the table, it was like falling down a rabbit hole into wonderland. i read a book about the science of cooking. in his book, he said browning your mean does not keep in the juices.

i thought about it, and thought that is really obvious. i then questioned everything. it was that mind that led to all of those things. cooking and eating involves all of the senses, and i found myself in this crossroad. i did a demo in spain in 2003. it was a multisensory experience. somebody said i just care about the food. you cannot take that approach. if you look at the ability of this approach to deal with things like health issues, a big cause of depression is loss of smell.

when all time or patience get to food has this ability to create well-being and comfort. a burger off a barbecue in the summer or a piece of toast on the mountain. it is very complex. climb a mountain and have a sandwich, i bet is one of the best sandwiches that you have ever had. there are more chromosomes and zahl -- involved in the human body in taste and flavor perception. in there taste buds stomach. this is a new thing. if you think about it -- tastebuds in the stomach. when wind sippers sip and spit you do not swallow,

you're not giving the full range of emotional response in the food. when you swallow, it releases aroma in the back of the throat and your taste buds, is like watching a film where part of the screen cuts off. when you blush, the lining of your stomach goes red. i >> i didn't know that. >> i don't remember where i read it. a man wanted to write about the science of everyday life, but he wasn't a scientist. >> when i did science, it was bill -- it was about being able to replicate. when you look at cooking, how much of it is touch and feel and what you are looking at rather than -- >> so much. even now, people might think, i

am still cooking. sometimes what we might do is vanilla ice cream in a different vanilla ice creams and change the a content in each want to look at the melt rate and alley flavors relate. -- and how the flavors relate. you're still cooking and tasting. you want to get the best out of that dish. you want something that makes you go ah. happens, youhat come across something and an idea pops up. science can help you work out why it happened. even when you're looking at

ginger, as it heats up, the molecules come off. there is a machine that records each one of those. even with this equipment, they still need a person in front of the machine sniffing. on earthno machine that can pick up some of the stuff theup. -- combination of the two >> i want to ask you about your new series. it is putting british food on the map. i am an italian living in london. >> i discovered that we have a wealth of gastronomic heritage going back 200, 300 years.

that we reasons it was had something that was it as good or as highly regarded as any country in europe. got fascinated in historical recipes. this is about dishes that have built britain. fish and chips, roast beef, pies. how those grow, why they grew, and how they have changed are the ages. the pie casing you never ate. it was flour and water. it was like a tupperware container. someone decided that if you put a fat in it, you could eat the pastry. royalty level pies were used to

hide things in to surprise guests. -- he made a suit of armor for her and put him in a pie, he jumped out of the pie, and in ing --ying -- the key >> lawyer best christmas tips? >> don't invite too many people over. put everything on and heated up. -- heat it up. >> thank you for your time. >> as we had to break, the world is paying tribute to nelson

mandela. leaders are there including barack obama who will be speaking shortly. we're going to take a break. we will be back. ♪

's new energy, how much additional power will

divine need to support all the visitors? answers.he latest what are the plans? dubai has its own plan to develop renewable energy independent of the expo. i was already in place. they are going to need about 50 megawatts more solar power than they have planned to meet that target. about 50 megawatts they will probably add for the event itself. >> thank you for that update. we will have plenty more from dubai and the need for renewable energy in that region for the next couple of days. >> bloomberg the first word is coming up next. for our viewers, it is the second hour of "the pulse." >> we will be talking about one

of the people that will possibly replace steve ballmer. he is satya nadella. ♪

>> mark carney hits the big apple. he talks up the u.k. recovery and a charlie rose exclusive. >> it is just beginning. the true recovery is beginning. the core of root -- of the systems are repaired. >> in the running to replace ball mark, we speak to satya nadella. he is on a shortlist to read the tech giants. stand shoulders to shoulder to remember mandela. you're looking at live pictures at a memorial to honor south africa's first black president.

good morning to our viewers in europe. a warm welcome to those just waking up in the united states. i am guy johnson. >> i am francine lacqua. this is the pulse. he could replace steve ballmer. satya nadella is one of our key guests this hour. will he or won't he be the next boss of that business? with mark carney. he spoke to charlie in an exclusive interview that interviewed last night. -- that aired last night. with theferro joins us latest. what were the key takeaways? >> if you look at dinner tables in the u.s., they are discussing u.s. politics. here in the u.k., we are

obsessed with u.k. house prices. we got inside with mark carney. this is the big issue in the u.k. right now. the housing market. this boom is reaching other parts of the u.k. mark carney chop -- talking to charlie rose this thing the market is rocksolid, but he wants to make sure that they are proactive to any risk that may happen on prices going on a tear. away is pretty simple. he does not want to raise rates prematurely and does not want to do that because of the housing market when the wider recovery hasn't taken hold yet. about its not talk very much, u.s. politics. what did he have to say? >> you don't get to hear this much. especially to have him comment on u.s. politics out -- elsewhere. check it out. i it is fair to say, and

hesitate to comment on other people's politics, but it is widely acknowledged that a series of decisions on the fiscal side, a series of short- term incentives and kicking the can down the road, but worst of all, because we have just gone with huge fiscal doesn't do any thing -- anything to fix long-term fiscal problems in the united states. a lot of the pain without any of the long-term gain. >> kicking the can down the road in the forced sense of the word. -- in the worst sense of the word. he wants a stronger recovery. we all have a stake in that. he is adding his voice to a

concern chorus ahead of the budget deadline that is december agree u.s. politicians to on a budget and avoid a repeat of october. >> thank you. you can hear the full interview p.m.charlie rose at 10:00 u.k. time. interesting things there. make sure you stay tuned. has thes steepest -- steepest job cuts in five years. the whole business is being renamed airbus and i think that probably tells you as much as you need to know. stage -- at one stage a goal to have defense represent 50% of the business at

the eads. it has always been around about 70% and they have never been able to build up that defense and space business. they try to when they presented the merger plans with eads systems. the other thing that has been going on is that we have been seeing us drop in demand from european governments. without the demand from european governments, what is the strategy of keeping alive all of arounderse and spread defense companies and businesses? that is why we are seeing the 6000 jobs going. there is a merger of the defense and space businesses and we're seeing these land closures taking place in four countries along with the sale of the eads headquarters in paris. going to focus

on export markets and in order to do that, you have to reduce cost. the question is whether that is the way to get export market share. there are other things that need to be done. it is a difficult business at the moment. other companies are going after the export markets. price is a massive consideration for the third- party market. i can see his point on the cost side of things. the share price performance has been stellar. that is a reflection of what is been going on a civil market. you only have to look at -- to appreciate that these guys have been selling planes hand over fist. think about it, with an oil price at about $100 per barrel, you will see airlines wanting to renew their fleet. look at what is happening in the united states. you have the end of consolidation, that is taking place there.

those airlines are taking a look at the oldest fleets in the world and they're going to have to start renewing them and having more efficient fleet. demand is growing in china, india to a certain extent. it is that civil aircraft business that will continue to drive growth at the newly renamed airbus. david, great work. david tweed joining us from berlin. francine? >> thank you so much. let's focus on a memorial for nelson mandela. at pictures from a live event. tens of thousands south -- of fricans are there to pay tribute to nelson mandela. our reporter is here to talk us through the proceedings. a lot of people are starting to come through the doors at 6:00

a.m. when do we expect speeches to start? he is currently embarking on a first address and reflecting on nelson mandela's life and talking about what we can expect for the rest of the day. we have president barack obama and we will have the cuban president and the chinese vice president is going to be addressing the crowd. we're expecting to hear from friends of nelson mandela and a few generations down the line, we will be hearing from his grandchildren and reflecting on some of the changes that he -- that we have seen in the country over the last few years. this is unprecedented. we have not seen such a huge gathering from leaders around the world globally. the press are making links to the funeral of john f.

kennedy. this is a memorial service, but there will be the funeral on sunday which will be a private affair. >> it will be a private affair. going to be buried next to his family. the mandela family has been dealing with tensions which have been playing out over the past few months, despite the fact that he was very ill. you are to see people uniting today. we heard cheers a few moments ago. there is a lot of pensions that you see there. you have the iranian president at the same present -- event as president obama. is interesting that the vice president is going to be addressing the crowd.

i think it is testament to the crowd that there is a relationship between china and south africa. there are a lot of question marks about chinese human rights. >> thank you. god, you're talking -- guy, you are talking tech. seen vasthas improvements in technology. caroline hyde joins us for more. the tech world a very different place compared to what look like in 2003. it is a competitive space. >> it is. we are still recovering from com bubble and we are particularly facing another bubble. we saw twitter's ipo surged 17% on the first day.

when itunes store opened, 200 thousand songs, and in 10 years, 26 million songs written -- 26 million songs being sold. about cameras on your smartphones, back in 2003 they were just taking off. what about espionage? es is in thefi oxford dictionary. we are moving on liedson bounds in the past decade. what about the next decade? that is the question being asked. 3-d printing. bras made out of rete printing. , $2 trillion.g that is the size of that market.

a key question i am going to be talking to our guest, satya he is the executive president of cloud at microsoft. so key questions about that market. >> thank you. for a man whoage could be the next boss replacing steve ballmer? >> erg why may become the first -- uraguo legalize the ay may be the first country to legalize marijuana. the proposal would create a state regulated market and the move would be an effort to undermine the cannabis plant market. is said to plan a u.s. ipo in the next year. picked theto have

bank of america to leave its ipo. lululemon's founder will step down as chairman. the company recalled yoga plants -- pants for being too sheer earlier in the year. theatya nadella is one of contenders to lead the tech giant on the heels of steve ballmer. we will ask him about that after the break. -- after the break, paying tribute to nelson mandela. tens of thousands of south africans are there to pay tribute to their president. world leaders are also in attendance. ♪

>> the interest rate is 0.2 annual. that is pretty cheap money for any economy. like japan, south korea is investing in infrastructure.

>> let's talk about what is happening in fx land. a legollar, we have seen up. we saw that earlier. we have drifted off. talks in rome. pay attention. we have had disappointing data out of france in terms of the industrial production numbers. it is going to be a busy day for the euro-dollar.

the trend seems to be upwards at the moment. it will be interesting to hear what the fed speakers have to say. the leweb conference is underway and we are looking at what is in store for the next 10 years of tech. caroline hyde is standing by with an exclusive interview. a very special guest. satya nadella. he is from microsoft. he is the executive vice president of cloud and enterprise. we are here at low-end in france. in france. how much are we moved outside of tech that -- outside of silicon valley? great to see all of the startups and innovations here. i spent a bunch of time with a lot of companies and startups

doing great work with our cloud computing platform. that is one of the things i find exciting. isre's a company that building a recruiting and talent management application. company that is doing a fantastic innovative crm for mobile applications. work, which is like the netflix of france, the notion of building up the cloud platform is one of the most exciting things that i am seeing. how big a market could this become? it is stunning. with this $2 trillion of ip spent globally and all of it getting disrupted because of the cloud computing. we see a lot of great growth thing -- growth in our own platform.

is cloudr revenue computing. if you look at what has happened in the last quarter, it grew over 100%. we have over 50% of the fortune 500 using it. that's the kind of new growth $2t we are seeing as this trillion of ip spent is going to a fundamental share. >> are you finding it is just new and new businesses coming on board and getting on board with clout or are you having to start taking clients off? or are you having to starting clients off? >> you have to think about consumer businesses and prices. you have to think about start up and large businesses. we are building out our cloud platform to enable all that. when i think about the cloud, it

is not just about the public cloud, it is really about the staff application that we have come a what we're doing with our business applications. one of the other key elements is we are one of the most unique in this in that we can take all the cloud technology to stand up and run our own public cloud and make it available for others. much broader than just having a cloud platform. you need to have a cloud platform and you need to be able to make available the technology for others. thatyou view that broadly, is what makes us most unique. broadly, we are the most comprehensive agenda there. you are now focusing on products and services, how is the written organization -- how

has the reorganization help harness the gross? >> it is about being organized. this reorganization that we went through is all about taking the new sonar is that we want to build out between and our cloud platform so we can serve our customers better. pivot as toa new how our cloud of lab form and office applications come together -- cloud platform and office applications come together. we know that someone else's going to be coming to the floor. have reorganization already taken these? >> absolutely. we have everything from new services.nd new we had a launch of our

developable -- developer platform. we are not waiting for anything. >> everyone is waiting for the new chief executive to be named. as ane in the running internal candidate. what are your chances of getting that role? >> the microsoft board is working on the process. i am engaged in running our enterprise engineering group. >> iu want the lead role? have said everything i am going to say about that topic. >> even if it is somebody new, will you be there remaining in charge of the cloud? microsoft is an exciting place to be right now. to look at what we're doing with our devices and services, the launch of surface 2, xbox, what we are doing with the cloud computing, it is an amazing spot to bn. to be in.

>> so you're in it for the long haul? >> yes. role in do you see your microsoft in a decade and rbc microsoft? and where do you see microsoft? >> we always stood for being a market force for being a technology. being able to build out platforms where innervation can happen. that is the most -- where innovation can happen. that is the most exciting thing. the notion ofbout ambient intelligence. being able to read over large amounts of data and make every service and every display smart. , thank you very much indeed. who knows if he will be the next

ceo of microsoft, but for the moment, he is the executive vice president of cloud and enterprise. >> thank you. in it for the long-haul, regardless of who is ceo. that is my take away. >> we are back in two just a couple of minutes. ♪

>> you are looking at live pictures coming from south

africa. in a few minutes, we will be hearing from president barack obama. ♪

to "the pulse." live from european headquarters in london. what. am guy johnson. in an exclusive interview which aren't -- with charlie rose, carney says the recovery will depend on his european partners and his efforts to reform banks. >> we have improved in terms of the risk, but the dynamism is

not there and will not be there or appear until the worst of the ec -- until we see what the ecb is doing on fixing the banking system and that is completed. question, they need to do that. they fully recognize it. it is a landmark step in a five-year effort to rein in wall street. some types of trading have been curbed in the final version of the volcker rule. the ban has been contested by wall street banks for more than three years. leaders around the world are gathering in johannesburg to pay tribute to nelson mandela. it is expected to draw 90,000 people. away last week at the age of 95.

let's talk about the markets. we have not done that a great deal this morning. manus cranny is at the touchscreen with more. , we have media stocks rising, insurers are moving resources. industrial production came in better in italy than we anticipated. a rise here in the u k dovetail that with the carney comments, which is about a cautionary note about stepping back from low rates. record ines are at a the u.k. french industrial production, that disappointed. dollar is sideways trading as we wait for mario draghi to speak. he will be speaking in rome later on. it trades at 1.37. euro isall trend in the

higher over the past three months. the overall trend in sterling is higher over the past three months. all of this deliberation over the talk of tapering. perhaps some of the driver is in the euro story against the door -- the dollar is that you have the movement to budget surplus. a have the beginnings of stronger recovery. perhaps economics trumps the differentials. the ecb is doing less than the fed. the u.k. is doing less than the fed in terms of quantitative easing. u.s. futures -- we will give you a peek at that. clouded at the moment. unchanged complexion, even though all of the chatter about tabor last night from the fed government. flat on s&p. our markets editor, manus

cranny. a small town is cashing in on theg the backdrop for being location for "game of times." -- game of thrones." it is easy to see why the city has been a hit with tv crews and taurus. is thetected town location of "gamee of thrones." a game of firms walking tour. she draws crowds from a cloths -- across the globe's. a lot of people who know about that introduces

them and they want to come here to see where it was filmed. vnik's history dates back to the middle ages. more recently, when yugoslavia , it was in the 1990's shelled. the city wants to restore its place on the global taurus map -- tourist map. the online dating site, zoosk is hoping to woo investors. they're trying to follow the footsteps of twitter with the u.s. offering. than 4000 similar services, competition is fierce. matt campbell joins us with 's plan to goosk public.

this is another tech ipo, or is it? >> this is smaller than twitter. they have something in the neighbor of $40 million in annual revenue. this is not a world trading -- world changing social media it is evident that investors are eager to put money into these technology companies. , venture capital firms, and their founders see a window to go public. zoosk is joining the party with the likes of twitter. websites, zoosk has a link with facebook, but so do many others. of these apps and sites promised particular features, but they are similar. your users tend to stop paying as they pair off. inally, once people are

relationships, they stop using the service. you need new people coming in the door to keep your revenue up. unlike face but, -- unlike facebook, the site can go out of fashion. there is a real risk in being the flavor of the month in the this point tooes the way that we use facebook is as changing? jokeople use to do profiles. you would have abraham lincoln on facebook. they were funny. facebook cracked down on these and said we only want real people profiles. that seemed a bit annoying because we were being denied these humorous facebook pages, but what facebook had in mind was to become an authenticator. there is social pressure to be a

real person with real friends. facebook is hugely powerful. we see facebook plugging into these apps. this is facebook as platform then as a destination for people to spend their time on. perspective, it is important because that is more data from them and more opportunities to advertise. >> thank you. it is a lucrative business and one that we have to figure out where it comes from here. in 20 minutes, it is "bloomberg surveillance" with tom keene. we are looking at online dating. was in dubravnik for "game of thrones." we are not going to do "game of times." we are going to do online

dating, but more importantly, we will talk about the volcker rule. that announcement we hope to see. we will talk to any number of ker rule andthe volc then we will move on to talk about other events of the day. >> i like your dragon mascot. it is like the new "su rveillance" mascot. will join us. we will talk about his "game of thrones," game of which is wall street. an amazing turnout of world leaders format -- four nelson mandela. keene on "surveillance."

we spoke with kristy turlington and she spoke with us about what it is like starting up for a nonprofit versus a business. >> starting up a business is the same as they not rosset -- same as thea non profit. it was harder to raise money for my nonprofit. it is a funny thing. that was kristy turlington. guy, we have more on the memorial four nelson mandela. we are going to be listening to a series of dignitaries throughout the morning. they will be talking about the life and times of a man who changed a country and the world. or the country's first black president.

we have leaders from around the globe. barack obama will be speaking later. the un's secretary-general will also be speaking as well. the president of brazil, the vice president of china, the president of india, and the president of cuba speaking later at this event. it is an amazing scene. people have traveled across the continent to be at this event. they have been traveling for days. i will leave you with the pictures. we will continue to monitor the event as it takes place in the football stadium in soweto. ♪

>> welcome back to "the pulse." live from london on bloomberg tv and bloomberg radio. >> let's get some company news for you. qantas has touched its lowest level since 1995. root --since analysts they fell four percent. they lost their investment grade credit rating for standard and poor last week. world's economy will enjoy faster growth next year. it will ask band between two and a half and three percent next

year. balance sheets are in a better place. japan's biggest brokerage will seek peace bowl -- seek people to build business with private equity firms. >> as 2013 comes to a close, let's take a look at the year that was and media. content was king. what effect will this shift in distribution have on big media? thank you for coming on. what is going to be the main difference between 20 and 2014? 2013 ande the same -- 2014? will it be the same? sectors performed well.

that was driven in part by strong fundamentals on the advertising side as well as the realization that there are some new buyers for hollywood content. some of the most notable ones are layers like netflix. if you're in hollywood, you're a pretty good position. we think in 2014, it will be a little bit better. a lot of those content owners are getting paid for their content from new buyers such as netflix. >> what will be the fundamental shift, such as the advertising going onto mobile? you think about internet advertising overall, one of the fastest-growing sectors is mobile. usages a reflector of going more and more to mobile devices. look at the facebooks and twitters of the world. more of their users are accessing their sites on mobile

devices. advertising dollars follow audiences. madison avenue and big ad agencies are figuring out how to advertise on mobile devices. that is one of the big sources of growth. >> where is the audience? , when we looking at the media landscape, it is ofr increasing import original content. an came along and created original programming. we are seeing services such as netflix not just repeat so -- shows, but creating their own content, such as house of cards. the investment in programming is ramping up. that is good for folks in hollywood. guy, you have more on this. >> let's continue the conversation. figure out what the situation looks like next year here in

europe. listening to that conversation, how different is the story of estates from that in europe? >> the companies we have in europe are traditional. we have fewer plays on the really exciting growth areas with the media. we are maybe five years behind the curve on that respect. storiesthe e-commerce dominate in the u.s.. we are more traditional. we have exciting growth stories. >> the disruption that is taking place in the states in the media industry has been staggering. companies that a year ago were nothing, they seem like they are -- huge amounts of oddballs. what -- eyeballs. there are specifics. europe has smaller countries.

loyalty local newspapers is more profound here than it would be in the u.s. there are lessons to be learned. mobile will take an increasing growth of tablets will impact the shape of the advertising market. m&aou have talked about the story. and ive a media company am trying to understand the trends we have been talking about. why do i want to buy another company? it is content versus distribution. content is king and the distribution is secondary. is my my favorite names tv. they have developed a strong content platform. now, iset, only beginning to realize how

valuable that will be. that content will be put through any number of pipes through any number of platforms. >> distribution is changing enormously. >> yes, it is. the big players, the big media owners are aware of this, but eyeballs remain scarce and hard to get a hold of. the advertising dollars follow those eyeballs. we're seeing a shift, but the mix of the advertising space is going to say the same. -- stay the same. , the storypicture for advertising is getting better. the expectations into next year are improved. macro is helping. to see anxpect acceleration of that growth next year.

that will help with every media company. >> nice to see you. what have we got coming up as we head into break -- the world is honoring nelson mandela. you're looking at live pictures coming from the memorial service johannesburg. leaders from around the world are there. the event is expected to draw 90,000 people. millions will be watching this around the world. of three major public events of this week. south africa's first black president passed away last week at the age of 95. ♪

>> welcome back. you are watching "the pulse." we are live on bloomberg tv, on the radio, and streaming on your tablet and bloomberg.com. mixed data out of euro. italian numbers. the u.k. number was fairly good. mario draghi will be speaking in rome. all eyes on him. pay attention to the moves that are being made to create a banking union in europe. are they enough? will they break the link between the sovereign and the banking sector?

1.3747 is where we are trading. to knowis what you need for the rest of the trading day. nelson mandela's memorial. thousands in the stadium, millions watching. he was a truly remarkable man life andd people, in his death as well. rule or week? >> marijuana. raguay could be the first and the world to legalize marijuana. thought the netherlands was, but apparently not. it is still illegal to buy marijuana in amsterdam. you are now free to do it apparently in uraguay.

two states in the united states -- marijuana correspondent. >> what a title. >> there's a big angle for business. you make something illegal, you push it underground, you get tax revenue and you stop spending money trying to protect citizens from smoking weed if you make it legal. entertain me for a moment. -- wouldk you would be have to be high to read the whole thing. they went to try to finalize the volcker rule today. >> good segue. >> thank you so much. >> i want to leave you with live pictures that are coming to us from just outside johannesburg from the football stadium in soweto.

and south africa pays tribute to nelson mandela. he passed away last week at age 95. ♪

>> this is "bloomberg surveillance." this seventh year of financial crisis, washington says wall street muslims by the vocal role. the customer comes first year it -- comes first.

presidents travel to johannesburg to pay respect to the memory of nelson mandela. late,r fedex package is you deserve a refund? this is "bloomberg surveillance ." i'm tom keene. joining me is scarlet fu and alix steel. let's get right to the morning breeze as the ceremonies continue in south africa. >> in china, industrial output rose less than estimated in november while retail sales unexpectedly accelerated. it paints a mixed picture of growth as leaders gather in beijing to set economic policies for the coming year. you're in the u.s., 7:30 a.m., nisb small business optimism and then wholesale inventories and we have earnings for going out. 7:00 a.m., toll brothers. after the bell, smith & wesson earnings. we are waiting for president of >> -- president obama to speak in johannesburg where he joins 90 other heads of state. >> ban ki-